Markets up for fifth consecutive session

Mumbai, July 24: Steady buying interest in capital, power and information technology (IT) scrips and bullish Asian and US indices today propelled the Bombay Stock Exchange (BSE) Sensex to settle on a winning streak for the fifth straight session at 15,794.92, registering a gain of 62.72 points.

''Today's gains are relatively modest in comparison to the previous five sessions as the market was choppy today, which is likely to be the case over the next two days ahead of the expiry of this month's derivatives contracts on day-after-tomorrow,'' market analysts cautioned.

Meanwhile, the broader National Stock Exchange (NSE) S&P CNX Nifty Index advanced marginally by just 1.40 points to settle modestly higher at 4,620.75 from its previous close of 4,619.35 after opening firmer at 4,620.05 and moving between 4,647.95 and 4,609.75 during the day's session.

BSE data showed that the market breadth, indicating the overall health of the market, was negative as small-cap and mid-cap shares came under selling pressure. 1,776 have shares declined while only 901 have advanced and 64 remained unchanged. The total turnover amounted to Rs 5,558 crore. Among the 30-stock Sensex pack, 19 declined while the rest advanced.

''Auto stocks came under selling pressure on profit booking.

Cement scrips also took a breather after the recent rally. Shares from the capital goods sector advanced as investors chased these stocks betting on their soaring order book positions of these companies. These stocks were further boosted by reports that these companies would bag lucrative contracts as a result of the breakthrough achieved in the India-US nuclear deal,'' market pundits observed.

Reliance Energy (REL), Satyam Computers, BHEL, L&T and NTPC were the prominent leaders, while Mahindra&Mahindra, Tata Motors, Maruti Udyog, Hero Honda, ACC, Ambuja Cements and Grasim were the notable laggards.

Asian indices gained, as Japan's Nikkei was up 0.21 per cent to 18,002.03, Taiwan's Taiwan Weighted rose 1.27 per cent to 9,744.06, Hong Kong's Hang Seng rose 0.46 per cent to 23,472.88 and Singapore's Straits Times gained 0.82 per cent to 3,665.13, but China's Shanghai Composite was down 0.07 per cent to 4,210.32.

US stocks rebounded yesterday after a fresh round of buyout news offered evidence that Wall Street's penchant for dealmaking hasn't disappeared. Better-than-expected profit news from Merck&Co also boosted the mood on Wall Street. The Dow Jones industrial average rose 92.34 points, or 0.67 per cent, to 13,943.42.

The broader Standard&Poor's 500 index rose 7.46 points, or 0.49 per cent, to 1,541.56. The technology-heavy Nasdaq composite index showed more modest gains, rising 2.98 points, or 0.11 per cent, to 2,690.58.

European indices were trading on a weak note today.

Leading power utility Reliance Energy (REL) galloped by 7.58 per cent to Rs 768.95 on reports that it is in talks with commodity exchanges, the Multi Commodity Exchange (MCX) and the National Commodity Derivatives Exchange (NCDEX), to pick up equity stake in two power exchanges proposed to be set up by them. It was the top gainer from the Sensex pack. The stock rose on high volume of 20.56 lakh shares on BSE.

Top utility maker and tractor major Mahindra&Mahindra was the top loser from the Sensex pack. The stock was down 3.13 per cent to Rs 797.30 on 75,509 shares. Tata Motors was down 2.87 per cent to Rs 749, Maruti Udyog sank 1.52 per cent to Rs 821 and India's top bike maker Hero Honda slipped 1.67 per cent to Rs 693 after the two-wheeler maker reported a 20.1 per cent fall in net profit to Rs 189.84 crore in first quaterly (Q1) June 2007 over the corresponding period last year.

Fourth largest software exporter Satyam Computer Services surged by 4.95 per cent to Rs 516 on announcing strategic initiatives to strengthen its presence in South Africa. The company is banking on a sizeable number of contracts emanating from South Africa in the coming years and sees potential in providing IT solutions to the banking, financial, energy and government sectors.

NTPC jumped 3.58 per cent to Rs 163 after the state-run power generation firm signed an memorandum of understanding (MoU) with Asian Development Bank for setting up a joint venture company to undertake renewable power generation. NTPC and other government entities will hold up to 50 per cent in the joint venture to be established with other strategic investors, who will hold the remainder. ADB is expected to acquire 20 per cent at a later stage, analysts said and added that financial details were not disclosed.

Index heavyweight Reliance Industries (RIL) slipped 0.13 per cent to Rs 1,908.50. The stock hit an all-time high of Rs 1,932 in intra-day trade today. Analysts tracking the energy sector said RIL plans to build a fertiliser plant that will use natural gas to be produced from its fields off India's east coast and the company has submitted a proposal to the fertiliser ministry to set up a plant with a capacity of up to four million tones.

Real estate developer Housing Development and Infrastructure (HDIL) settled at Rs 558.60 on BSE, a modest premium of 11.72 per cent over the price of Rs 500 per share. The stock debuted at Rs 567.50 and hit a low of Rs 473.50 and high of Rs 617.50 on 1.56 crore shares. The stock also debuted in NSE's futures and options (F&O) segment with a lot size of 400. The HDIL initial public offering (IPO) was subscribed 6.6 times.

Meanwhile, oil prices extended losses in Asia today of nearly one US dollar, from the previous session, amid worries that crude prices have risen too high in recent weeks and on speculation that the recent OPEC comments may signal a less bullish position on production and supplies. Light, sweet crude for September delivery lost 13 cents to USD 74.76 a barrel in Asian electronic trading on the New York Mercantile Exchange. The contract fell 90 cents to USD 74.89 a barrel yesterday.

UNI